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Boris Johnson news – live: Government 'far too slow' to roll out economic recovery plan, says Sadiq Khan, as Rishi Sunak unveils mini-budget

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Andy Gregory,Vincent Wood
Wednesday 08 July 2020 09:05 EDT
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Every diner to get £10 restaurant discount and VAT slashed for hospitality sector

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Chancellor Rishi Sunak has scrapped stamp duty for homes under £500,000 and slashed VAT on the hospitality sector – with Britons to be given money-off restaurant vouchers throughout August - in his emergency “mini-budget”, as he announced the government’s coronavirus furlough scheme will end in October.

It came after Boris Johnson and Keir Starmer clashed in the Commons, with the Labour leader accusing the prime minister of “rubbing salt in the wounds” of care home workers with his comments that they had failed to follow procedures as Covid-19 deaths soared. Mr Johnson said the government took “full responsibility” but failed to directly apologise for his comments.

Meanwhile, the finance ministers of Scotland, Wales and Northern Ireland have also written to the chancellor to demand Westminster hand over “crucial” but “relatively limited” fiscal powers in light of the coronavirus crisis, to allow capital spending to be moved over to day-to-day revenue and bring an end to “arbitrary” borrowing limits.

Please allow a moment for the liveblog to load:

Rishi Sunak has announced that a stamp duty “holiday” will come into effect immediately, making certain properties on the market exempt from the tax.

Here's everything you need to know:

Chiara.Giordano8 July 2020 14:07

Restaurant discount won't include alcoholic drinks

The 50% "eat out to help out" discount can be used "unlimited times" on eligible days when dining in but will only include non-alcoholic drinks, the Treasury's Plan For Jobs document says.

The temporary VAT cut for the hospitality sector also doesn't include alcoholic drinks, according to the document.

Chiara.Giordano8 July 2020 14:14

What the new restaurant discounts are and how to claim them

Chiara.Giordano8 July 2020 14:20

'Never done before'

Former business secretary Andrea Leadsom tweeted: "Never done before -

government paying us all to go back to restaurants/cafes/pubs via a discount for

food.

"Interesting and radical way to get the hospitality sector going and save

jobs."

Chiara.Giordano8 July 2020 14:30

Gyms will be open by the time restaurant scheme begins

Rishi Sunak suggested gyms will be open by the time the "eat out to help out" voucher scheme is operating in August.

The DUP's Sammy Wilson (East Antrim) joked: "I think the clothes shops might welcome it as well, as once we've eaten our way through a month's half-priced meals, we might all be visiting them."

The Chancellor replied: "Perhaps alongside 'eat out to help out', we can make progress on reopening our gyms so at the same time we can deal with that side of the equation."

Chiara.Giordano8 July 2020 14:36

Chancellor's plan fails to tackle harms to children during lockdown, Children's Society says

“We recognise the unprecedented times we are in, and we warmly welcome the Chancellor’s plans to support young people into work. We need to see the detail and it’s important that they include additional support for vulnerable groups like care leavers," said the Children’s Society chief executive Mark Russell.

“However, it was deeply disappointing to see so little in the Chancellor’s plans to address the deep scars lockdown and school closures have inflicted on children’s happiness and mental health. 

“This crisis has left many children at greater risk, with abuse and sexual and criminal exploitation more likely to be hidden from view, while others have struggled with isolation and been left at greater risk of the ravages of poverty with some parents sadly losing work. 

“Jobs and protecting the economy are of course important, but so is protecting our children and helping them to flourish and shockingly, two-thirds of children living in poverty now have at least one parent in work. The measures announced today will do nothing to address this. 

“What was needed was a comprehensive package to help children and young people. That means restoring vital funding to enable struggling councils to better help and protect vulnerable children, more open-access mental health support in the community and more help for families struggling financially. 

“Without urgent action to protect children, help them through these tough times and support them to re-engage in education, their life chances could be seriously damaged. This will cause enormous harm not only to them, but also our economy in the long-run.” 

Among the measures the Children’s Society is calling for are: suspension of the immigration rules preventing access to public funds for tens of thousands of migrant families; an extra £10 a week for child benefit; and more local funding for children's services.

Andy Gregory8 July 2020 14:46

Rural tourism sector 'delighted' with VAT cut for hospitality industry

Rishi Sunak's announcement that he will be cutting VAT on tourism businesses from 20 per cent to five per cent has been welcomed by a body representing 5,000 tourism businesses in England and Wales.

“After intense lobbying from the Country Land and Business Association, we’re delighted that the government has cut VAT to help our tourism sector fight back from a devastating start to the year," said Country Land and Business Association president Mark Bridgeman.

“Until now VAT on tourism businesses has been much higher than in other comparable countries putting domestic tourism businesses at a competitive disadvantage to holiday providers overseas.

"This welcome change from government means more people will be able to afford to enjoy a holiday in the Great British countryside whilst also helping to revive rural economies across the country.

“The next challenge will be to ensure we are able to stimulate demand not just in the short term, but through the less popular winter months too”.

Andy Gregory8 July 2020 14:52

Chancellor accused of letting down self-employed, as workers face 'cliff edge' once furlough ends

The government has been accused of letting down millions of "forgotten" freelance and self-employed workers, while many now face a "cliff edge" once the furlough scheme is wrapped up by Rishi Sunak in October.

"There were millions of forgotten freelancers and others across the country hanging on the Chancellor's every word today, but once again the government has let them down and failed to recognise the plight of those who have fallen through the gaps," said Philippa Childs, head of Bectu - which represents workers in the broadcasting industry.

Ms Childs welcomed the £1.57bn pledged for the arts sector but warned there must be extra support for freelancers, saying: "If they do not then the future of the £100bn sector is at risk as highly skilled freelance and self-employed workers are forced to seek work elsewhere.

Andy Chamberlain, of the Association of Independent Professionals and the Self-Employed, said that while there were many positive measures in the Chancellor's statement, "the self-employed were noticeable by their absence".

"While the Chancellor has announced a measured and sensible end to the employee furlough scheme in October, freelancers are left to face a cliff-edge in August.

"Some freelancers relying on the Self-Employment Income Support Scheme (SEISS) may benefit from the sectoral support announced today, but many more will not."

Mike Clancy, general secretary of the Prospect union, said: "The Chancellor started his statement saying that 'nobody will be left without hope', but there was nothing in his new package for the millions of forgotten freelancers and others who have been left with no hope and no support for months.

"There were welcome measures to support jobs in the package today, but the government still failed to acknowledge that there are some sectors that need extra support so they can retain viable jobs until they can reopen."

Andy Gregory8 July 2020 15:09

'Sticking plaster on same old failing economic system,' Faiza Shaheen says

"Today, the Chancellor could have put this country on a new economic course - one that prioritises people and the planet. Instead we got a sticking plaster on the same old failing economic system," said Centre for Labour and Social Studies director Faiza Shaheen, who unsuccessfully ran as a Labour parliamentary candidate in 2019.

"Given the scale of the economic downturn, Rishi Sunak was extremely timid in his use of fiscal stabilisers and job investment programmes.

"We needed a new deal for the planet, workers and public services to future-proof the economy to face the climate crisis, the jobs crisis, and a potential second wave of coronavirus.

"On energy efficiency, the £2bn pledged on the green homes grant was inadequate given there are 25 million dwellings. And targeting young people at risk of unemployment for kickstart placements is no substitute for a serious green jobs investment plan. This ‘mini-budget’ is more about political insulation from future public anger at rocketing unemployment rather than learning the lessons of the pandemic."

Andy Gregory8 July 2020 15:19

'Let them eat Nando's': Twitter reacts to meal vouchers and end of furlough scheme

Rishi Sunak's announcement of government-backed restaurant vouchers - likely envisioned as a crowd-pleaser as well as an innovative way to stimulate spending in the sector - is facing some ridicule on social media, given that it came in the same breath as his decision to end the furlough scheme in October.

As Nandos began to trend on Twitter, others questioned the impact that social distancing and fears of infection would have upon the scheme.

And some pointed out the contrast between the government's unwillingness to provide free school meals for vulnerable children and its decision to give discounted meals to the whole country.

Andy Gregory8 July 2020 15:37

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